The Illinois Senate on Friday approved Gov. Rod Blagojevichs $10 billion general obligation pension bond proposal after a night of negotiations shifted the political tide to bring in enough Republican votes for the controversial plan. The vote was swayed after Blagojevich explained the context of the plan within his budget proposal, which he will introduce this week, according to Patty Schuh, a spokeswoman for Republican Sen. Frank Watson. Watson met Thursday night with Blagojevich, who provided answers the Republicans had been seeking, she said. The final vote was 37 to 16 in favor of the resolution. Four Republicans supported the measure, she said. The approval came after Blagojevich negotiated late Thursday night with Republicans who had shot down the deal in an earlier vote Wednesday night. Blagojevich called the vote Wednesday, expecting to win the three-fifths majority needed on debt-related legislation. However, that measure failed, coming up one vote short of the necessary 36. Fridays victory came after a defeat that could have been an embarrassment for the freshman Democratic governor. The borrowing plan would free up funds to help fill a projected $4.8 billion deficit in the fiscal 2004 budget. The state would issue taxable general obligation bonds and use the proceeds to restructure a portion of its $36 billion of unfunded pension liabilities. About $2 billion of the funds would cover the states payment due to the pension funds in fiscal 2004. The remainder would be invested and the earnings used for pension payments. The House approved the legislation last month with a handful of GOP votes. Republicans in the Senate alluded to concessions they wanted to see before voting for the proposal. Blagojevich will release his fiscal 2004 budget next week. He won a two-month reprieve to introduce his budget in April instead of February. He has released only vague details about his plan but has said he would not raise sales or income taxes.
